1 The Strategy of Investment Decision Making Based on Fundamental Analysis to Evaluate The Fairness Stock Price Santy Mayda Batubara 1 , Fenni Supriadi 2 , Ryani Yulian 3 , and Hazmanan Khair 4 {santy.mayda@unmuhpnk.ac.id 1 } 1,2,3 Faculty of Economic and Business, Universitas Muhammadiyah Pontianak, (UMP), Pontianak, Indonesia. 4 Universitas Muhammadiyah Sumatera Utara, Medan, Indonesia. Abstract: The purpose general this study are identify and analysis through fundamental analysis as the strategy of investment decision making in the capital market. This research method have used secondary data with purposive sample technique, sample of this study consist of 9 sector index companies for 3 periods from 2015 till 2017 and type this study included of quantitative descriptive research. The analysis used (1). Financial analysis of compare intrinsic value through the Price Earning Ratio approach to market value based on the closing stock price; and (2). Statistical analysis by different test through “the Independent sample t test”. The finding of this study that (1) Condition of 8 sector index companies are "overvalued" category, it caused of the intrinsic value is lower that market value. However, the financial sector is "undervalued" category, it caused the intrinsic value is higher than market value. (2) There is "a difference" betwen intrinsic value to market value and the hypothesis study is accepted. It mean the evaluation of investor should not only to reviewed from the financial factor, but also necessary of various factor. Keywords: intrinsic value, market value, price earning ratio and closing stock price 1. Introduction The Indonesia Stock Exchange noted that total of the retail investors have entered at the capital market were amount 3,000 investors in the first month of 2017, and additional investors were 538,000. At the end of 2016, the investor reached 536,000, it is increased around 104,000 investors compared to the previous year at 432,000 investors of the position at the capital market. While, it was 321,000 investors or 14% in 2013 year. In 2014 year, there were 364,000 investors or 13.3%; In 2015 there were 432,000 investors or 18.6%, and 536,000 investors or 24.07% in 2016 year, (http://market.bisnis.com). In 2017, Index Harga Saham Gabungan (IHSG) is assumed to growth in 5 to 10 percent for the ratio of Earning Per Share (EPS) and Price Earning Ratio (PER) is growth in 18 to 19 times or in 5,700 level, of worth 6,000 point, and include of a "moderate" position. There is a change condition and situation, so investors should to consider and evaluate for the share have given the high risk involved in investment. Not all of share are listed on the Stock Exchange could provide optimum results when investors made transactions, so necessary to analysis of minimum the existing risk before decided to buy, sell or hold shares. One of methods often used to analyze the fairness stock price is fundamental analysis through the Price Earning Ratio (PER) approach. The highest value of market capitalization is Financial sector companies of 1,625,799,772,944,190.00 (IDR) in high value, and Agricultural sector companies, of ICEMAB 2018, October 08-09, Medan, Indonesia Copyright © 2019 EAI DOI 10.4108/eai.8-10-2018.2288673